Armenian Central Bank lowers refinancing rate 0.25 p.p. to 7.5%
YEREVAN. June 28 (Interfax) - The board of the Armenian Central Bank has decided to lower the refinancing rate by 0.25 pp from July 1, from 7.75% to 7.5% pa.
Armenia had deflation of 0.7% in May 2016, compared to 0.5% deflation in May 2015, with annual deflation at 2.1% as a result, the Central Bank's press office said in a statement.
The Central Bank's board said there continues to be a slow rate of growth in the world economy and that the international commodity markets remained stable. However, a trend of increasing prices can be seen regarding certain goods. "Nevertheless, we believe that in the upcoming months, on the part of the external sector, significant inflationary influence is not expected," the press release said.
The Central Bank lowered its refinancing rate by 0.5 pp in May to 7.75% from an earlier 8.25%. Before that, the refinancing rate was lowered in March by 0.25 pp from 8.5% to 8.25%. In February it was lowered by 0.25 p.p. from 8.75% to 8.5%.
Consumer prices in Armenia grew 3.7% in 2015, below a budgeted 4%.